The China-Australia Free Trade Agreement (CHAFTA) took place on the 20th of December, 2015. It places a significant foundation for the next stage of the economic relationship between China and Australia. This agreement includes the major opportunities for Australia in relation with China.
Figure 1.1: Indicators of the size of Australia and China Economics .
Australia.
China.
Population (2014).
14 million.
1.5 Billion.
Exports of goods and services (% of GDP) 2014.
20.9.
22.6.
GDP per capita (2014).
US$ 61,925.5.
US$7,590.
GDP Growth (annual %) 2014.
2.5.
7.3.
GNI,PPP ( 2014).
42,760.
13,170.
Population density(people per sq km) 2014.
7,741.2.
9,562.9.
Source: World Bank (2014), World development Indicators 2014, Work Bank, Washington DC.
Economic Growth .
Economic growth refers to the increase in the real output or real GDP, which an economy produces over a period of time. The fundamentals for an economy is to maintain a substantial living standard for the upcoming future in order to increase the production of capital goods. .
Australia has experienced substantial development in economic growth over the last few decades; particularly due to the recent mining boom. The current status shows that Australia's annual average growth rate accommodates at 3.50%, having experienced its longest period of sustained economic growth on record in 2015. The GDP (Gross Domestic Product) calculates the national income and the country's economy output with equals to the total spending for goods and service that are initially produced. The Australian Bureau of Statistics show that in 2014, the GDP of $USD1.56 trillion and the annual growth rate of 2.5%. This indicates the beneficial aspects have risen from both higher domestic incomes, both factors increases consumption and as well as greater business investment. The comparison of China with the growth of Australia; the largest consumer exports, China sustained a GDP of 5.9 trillion in 2010 until 2015 and exceeding 2.
